Designing Transaction Platforms for It-enabled Dynamic Sourcing: the Case of Mobile Payment Services

Developments in information and other communication technologies have led to more insourcing and outsourcing opportunities for organizations. The traditional model of isolated IT outsourcing by a single organization is being eclipsed by a new trend of sourcing through interorganizational networks and IT-based virtual organizations. Dynamic sourcing is becoming a core characteristic of virtual organizations, especially information-intensive industries, in which interdependent organizational units promote specific core competencies and cooperative advantages. Transaction platforms are examples of dynamic, flexible, sourcing-based interorganizational systems that can be used in this process. Since in the management of these organizations one is considered to be capable of systematically influencing the relevant design variables, design theory can be used to affect organizational structures. By doing so, one can aim to improve the functioning of those structures. The design of transaction platforms is important for realizing new interorganizational and even cross-industrial structures. Transaction platforms in mobile commerce have become an example of how interorganizational structures permit different organizations to leverage their core competencies in order to achieve cooperative advantages. In addition, M-commerce transaction platforms are a good area to focus on because of the various ways in which these platforms can be applied, the widespread and easy availability of mobile services, and therefore the potential of M-commerce to become a highly remunerative branche of industry in the future.